LG Electronics Deploys Agere Systems' ATM Traffic Management Chips in its Wireless and Router Equipment

MONDAY JULY 21, 2003

ALLENTOWN, Pa. -- Agere Systems (NYSE: AGR.A, AGR.B) today announced that LG Electronics?one of Korea's two largest communications equipment manufacturers--has deployed Agere's asynchronous transfer mode (ATM) traffic management switching chips in its wireless base station and multiservice router equipment.

For LG's base stations, Agere is providing such ATM chips as its ATM Port Controller (APC) and ASX/ACE. In addition, LG's multiservice router houses Agere's APC, Pi-X and Pi-C (Protocol Independent, 10 gigabits per second), and PayloadPlus? chips for ATM-based multi-protocol service. LG plans to use in its multiservice routers Agere's PI-40X and PI-40C (40 gigabits per second) chip solutions, as well as the company's APP550 single-chip, traffic management network processor solution.

Agere ranks No. 1 worldwide in ATM chip shipments* with nearly 2 million chips shipped to customers worldwide. The company also ranks first worldwide in sales of traffic management chips**.

"To be viable players in the multiservice networking market, chip companies must have extensive ATM and traffic management expertise and a track record for delivering these products in high volumes to customers," said Steve Rago, analyst with iSuppli. "Agere's traction with LG Electronics and many other customers demonstrates that the company is strongly positioned for continued leadership in ATM and traffic management chips."

ATM is a widely deployed communications equipment technology that manages information flow. Traffic management, an ATM function, executes conceptually like a police "traffic cop." The technology organizes and sets priorities for delivery of voice, data, and video traffic through communications equipment. ATM and traffic management are key functions for existing equipment and next-generation equipment using the emerging Internet Protocol (IP) communications protocol.

"For the next few years, LG Electronics will focus heavily on extracting maximum value and revenues from our existing equipment to meet our current telecom service provider requirements," said S. H. Park, vice president of LG Electronics. "Agere's high performance ATM traffic management chip technology enables us to achieve that goal. Looking forward, that same Agere technology will be vital to us as we upgrade to next-generation, multiservice networks featuring ATM, traffic management and Internet Protocol technologies."

"ATM and traffic management are among those 'must haves' in the communications industry for now and several years to come," said Samir Samhouri, head of marketing with Agere's Multiservice Networking Division. "We are pleased that our ATM capabilities have enabled us to form this long-term relationship with LG Electronics for current and next-generation equipment. Agere's chips help LG Electronics reduce their total system costs and accelerate their product deliveries."

For more product information, customers may call the Agere Systems Customer Response Center, 1-800-372-2447 (or direct dial: 610-712-4323), Dept. B12 (in Canada, 1-800-553-2448, Dept. B12, fax number 1-610-712-4106, especially for callers outside of North America) or write to Agere Systems, Room 10A-301C, 1110 American Parkway NE, Lehigh Valley Central Campus, Allentown, Pa. 18109. Customers may also email: docmaster@agere.com.

Agere Systems is a premier provider of advanced integrated circuit solutions for wireless data, high-density storage and multiservice networking applications. Agere's wireless data portfolio enables seamless network access and Internet connectivity through its GPRS offering for data-capable cellular phones, as well as Wi-Fi/802.11 solutions for wireless LANs and computing applications. The company is the market leader in providing integrated circuits for the hard disk drive market, with number one positions in sales of system-on-a-chip solutions and preamplifiers. Agere also provides custom and standard multiservice networking solutions to move information across wired, wireless and enterprise networks. Agere's customers include the leading PC manufacturers, wireless terminal providers, network equipment suppliers and hard-disk drive providers. More information about Agere Systems is available from its web site at http://www.agere.com.

Established in 1958 as Korea's pioneer consumer electronics company, LG Electronics is a major global force in electronics, and Information and communications products. More than 55,000 employees working in 73 overseas subsidiaries and marketing units around the world, strengthen LG Electronics' core competencies in three main business companies: Digital Appliance, Digital Display and Media, Telecommunication Equipment and Handset. As the fruits of its concentrated endeavors in the innovation and development of leading-edge technologies, LG Electronics has achieved a position as a global leader in both its core sectors and new digital products such as digital TV, Internet appliances and next generation mobile handsets.

LG Electronics is focused on promoting home network and mobile network businesses based on cutting-edge multimedia application technology along with information and communication technology as its core business areas. LG Electronics' goal is to enable the intelligent networking of digital products that will make consumers' lives easier than ever. For more information, please visit http://www.lge.com.


* iSuppli
** RHK

Source: Agere Systems